Corporate Travel Management (CTM) has revealed that it overcharged UK customers by up to £118 million – a 52 per cent increase on its original estimate of £77.6 million – after deepening its investigation into major accounting errors.
The Australia-based travel management company said in a statement released to the Australian Securities Exchange (ASX) on Wednesday (22 April) that its ongoing “forensic” accounting review by KPMG found further irregularities going back to its 2019 financial year and “additional impacted underlying customer contracts”.
CTM said that it now expected to “reverse revenue” of up to £118 million to cover the years up to and including 2025, with a further revenue reversal of £10 million during the first half of its 2026 financial year “depending on the outcome of ongoing commercial discussions with certain customers”.
The TMC insisted that the accounting discrepancies only affected its UK operations and similar issues had not been identified in its other markets. Impacted clients include the UK government, which launched its own investigation into its relationship with CTM last year.
In its latest statement, CTM revealed that it had overcharged one customer [which has been named as the UK government in previous reports] by £54.6 million as part of hotel contracts to source 1.4 million nights in 2021, with these discrepancies first being identified in late 2022.
The TMC dismissed Michael Healy, its chief executive for Europe and the UK, “for breach of contractual obligations” in December 2025.
According to CTM’s statement, Healy was responsible for obtaining signed “letter agreements” with the UK government to resolve the overcharging issue in 2023. But the TMC said it became “aware of a suggestion that the letter agreements may not, in fact, be authentic” in November 2025.
CTM said that in addition to the original issues, KPMG’s investigation had discovered “other instances” of UK clients being overcharged and having their funds retained between July 2018 and June 2025, which led to the company overstating its revenues.
“These findings contradicted the position understood and relied on by the board of CTM,” added CTM. “Given the nature of the issues identified, appropriate notifications to relevant authorities have, and will continue to be made. CTM intends to co-operate fully with authorities in relation to these investigations.”
CTM’s shares have been suspended on the ASX since August 2025, but the company said it hoped they will start trading again during Q2 of 2026. The company’s founder and managing director Jamie Pherous also stepped down earlier this year.
The TMC said it had so far refunded around £12.1 million to impacted clients and that the amounts and timing of future repayments would be subject to CTM “reaching commercial agreements” with customers.
“Since November 2025, CTM has engaged, and will continue to engage, with representatives of key impacted UK customers. This dialogue has been collaborative and co-operative and is well advanced,” said CTM in its statement.
“CTM is committed to a just and proper resolution with impacted customers in the UK and is in the process of negotiating commercial arrangements.”
CTM chairman Ewen Crouch added in the statement: “The ongoing trading suspension [from ASX] and its impact on shareholders is deeply disappointing and a matter of serious concern for the board. We sincerely apologise to our shareholders and to affected clients in the UK for the circumstances that led to this situation.
“The length of the suspension reflects the board’s determination to fully investigate the issues identified in the UK and to address them decisively and completely. Today’s announcement marks an important step forward, and we continue to work constructively to finalise our work to allow the auditors to complete their procedures.”
Crouch added that “significant changes” have been implemented within CTM’s UK business, particularly “across financial controls and operational processes”.
“These actions were necessary, and they are progressing well,” he said. “It is important to note the review has confirmed these issues are isolated to the UK.”
CTM sought to reassure investors and clients by stating that it had A$115.7 million (£60 million) in cash and another A$75 million (£40 million) in "undrawn debt as of 31 March.
The TMC added that it “continues regular and productive engagement with key stakeholders” including airline association International Air Transport Association (IATA) and its banking partners.
CTM entered into “a financial security arrangement” with IATA in December, which involved “the provision of security and implementation” of shortened BSP (Billing and Settlement Plan) settlement periods.
Ana Pedersen, CTM’s acting group CEO, said that the TMC’s staff “continue to deliver outstanding and uninterrupted service for clients every day across our global operations”.
“As I meet with customers and partners around the world, it is clear that our offering remains strong, and we are committed to maintaining their confidence through the substantive action we are taking,” added Pedersen.
“Working closely with the board and the executive team, I am fully committed to resolving these matters as quickly and responsibly as possible.”